Question

Which of the following will result in an unfavorable direct labor cost​ variance?
A. the actual direct labor cost per hour is less than the standard direct labor cost per hour
B. actual direct labor hours exceed standard direct labor hours
C. actual direct labor hours are less than standard direct labor hours
D. the actual direct labor cost per hour exceeds the standard direct labor cost per hour

Answer 1

Answer:

option C

Explanation:

The correct answer is option C  

The formula of direct labor cost variance = Actual hours x ( actual rate - standard  rate)

the Unfavorable direct labor cost variance occurs when the actual direct labor rate exceeds the standard labor rate.

Direct labor cost variance is handled by the production department of the company.